Manny Pacquiao pays P32M amid P2.2B tax case

Saturday, January 18, 2014

Manny Pacquiao pays P32M amid P2.2B tax case

Has Manny Pacquiao settled his tax issues with the Bureau of Internal Revenue (BIR)? If you ask BIR chief Kim Henares, the fighting congressman's obligations remain unsettled even after their recent meeting.

A politician close to Pacquiao supposedly arranged the meeting between the fighting congressman and Henares.

The meeting was held in the commissioner's office in December, after a court issued a gag order on Pacquiao's tax settlement case.

Henares said no compromise was reached but Pacquiao apologized to her over the word war that erupted when news of the tax suit broke out.

"Bukas naman ang tanggapan ko kung sino ang gustong makipag-usap sa akin. Pumunta siya dito sa opisina, humingi siya ng paumanhin," she said.

Henares said Pacquiao has already paid the BIR P32 million, but it's just a small chunk of the P2.2 billion he allegedly owes government.

She gave Pacquiao several options on how to settle his obligations.

The options included paying 10 percent of the total amount due, provided he can show proof that he is unable to pay the full amount immediately.

“Based ito sa rules ng BIR, 40% ang babayaran, pero kailangan ng documents to prove na settled na n’ya ang iba pang taxes, including sa US. Second [option] 10 percent [ang babayaran] pero he has to show documents that he is financially incapable," the BIR commissioner said.

Henares also revealed that she advised Pacquiao to start taking care of his finances for his children's sake.

“Isipin mo na lang ang iyong mga anak, kasi from rags to riches, huwag naman sanang maging riches to rags, paano naman yung mga anak mo," she said.

Aside from his problems with the BIR, the boxer is also addressing an alleged $18 million tax deficiency with the US Internal Revenue Service (IRS).

Meantime, his lawyer and chief of staff at the House of Representatives blamed Pacquiao’s adviser, Michael Koncz, for the boxer’s financial problems in the US.

Lawyer Franklin “Jeng” Gacal said the Canadian adviser is in charge of overseeing Pacquiao’s tax obligations because he represents the boxer in his US transactions.

“Well, it appears there is really a problem. The IRS is claiming there is a tax deficiency. If there were some mistakes, it was Mike’s fault. Why did it happen?” said Gacal.

“They were supposed to have hired accountants. At the end of the year, after the filing of the tax returns, all problems should have been solved. If the US still has claims, there should be problems with recording and everything,” he said. “So this is the point man’s fault and that is Mike.” - with ANC

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